On January 1, 2021, Luv-U-2bits Ltd. sold $500,000 of 6%, five-year convertible bonds for $520,000. Each $1,000 bond was convertible into 40 no par value common shares. Similar nonconvertible bonds were yielding 7% at that time. Interest was paid semi-annually on June 30 and December 31. 

On July 1, 2024, bondholders converted 60% of the bonds to common shares. The interest payment had been made on June 30, 2024, in the normal fashion. 

The company prepares its financial statements in accordance with IFRS.

Required: 

Prepare journal entries to record: 

a. The issuance of the convertible bonds on January 1, 2021. 

b. Payment of interest and related amortization on June 30, 2021. 

c. Payment of interest and related amortization on June 30, 2024. 

d. Conversion of the bonds on July 1, 2024. 

e. Payment of interest and related amortization on December 31, 2025. 

f. Derecognition of the bond on January 1, 2026. 

g. Briefly explain the process of applying the incremental method of accounting for convertible bonds.